Crypto Firms Urge SEC for Formal DeFi Rules

A coalition of over 20 cryptocurrency companies and organizations has urged the U.S. Securities and Exchange Commission (SEC) to formalize its guidance on decentralized finance (DeFi) interfaces into official regulations. According to NS3.AI, the group, spearheaded by the DeFi Education Fund, argues that informal guidance lacks the necessary long-term regulatory clarity. This appeal comes in response to recent SEC guidance suggesting that certain DeFi front-ends and wallets might not be subject to broker-dealer regulations. However, industry participants express concern that the definition could be expanded in the future, potentially affecting a broader range of entities.